Quanta Services, Inc. (PWR) AI Stock Analysis

NYSE: PWRAI research summary: business, growth, valuation, analysts, bull and bear case.

PWR AI stock analysis summary

AI Research

Quanta Services, Inc. (PWR) provides specialized infrastructure contracting services for electric power, renewables, and underground utilities. Trailing twelve-month revenue reached $32.91B, with quarterly revenue growing 41.1% year-over-year. The company trades at a forward P/E of 33.0x with a net debt position of $6.10B as of June 30, 2026.

Market cap
$95.00B
Revenue (TTM)
$32.91B
P/E
72.4x
fwd 33.0x
1Y return
44.5%
S&P 500 16.8%
Avg. target
$766.01
21.2% vs last close

Bull case

  • Quarterly revenue grew 41.1% and quarterly earnings surged 94.7% year-over-year in the quarter ended June 30, 2026.
  • Free cash flow generation expanded consistently, rising from $195.7M in FY2021 to $1.62B in FY2025.
  • Consensus estimates anticipate EPS of $16.74 for FY2026, representing projected annual earnings growth of 55.7%.

Bear case

  • Valuation is elevated relative to peers, with a trailing P/E of 72.4x and forward P/E of 33.0x versus S&P 500 Industrials medians of 28.4x and 20.1x.
  • The company holds $6.60B in total debt and $6.10B in net debt against $506.4M in cash and short-term investments as of June 30, 2026.
  • Trailing twelve-month operating margin of 7.2% remains significantly below the peer median of 17.9% for S&P 500 Industrials.

What Quanta Services does

Quanta Services, Inc. is a global specialty contracting services company founded in 1997 and headquartered in Houston, Texas. It operates across three core business segments: Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions. The Electric Power segment focuses on designing, building, upgrading, and maintaining electric transmission and distribution infrastructure, substations, and smart grid systems, alongside emergency restoration and aviation services. The Renewable Energy segment provides engineering, procurement, and construction services for wind, solar, hydropower, and battery storage projects. The Underground Utility segment designs, engineers, and builds pipeline systems, compressor and pump stations, and storage facilities for natural gas and oil.

Growth and profitability

Quanta Services expanded annual revenue from $12.98B in FY2021 to $28.35B in FY2025, reflecting a 5-year revenue CAGR of 20.4%. Net income grew from $486.0M in FY2021 to $1.03B in FY2025, while EPS climbed from $4.91 to $10.75 over the same period. Operating margin improved from 5.2% in FY2021 to 5.8% in FY2025, with net margin finishing at 3.6%. For the trailing twelve months ended June 30, 2026, revenue stood at $32.91B with a profit margin of 4.0% and EPS of $8.73. In the latest quarter ended June 30, 2026, quarterly revenue increased 41.1% year-over-year, and quarterly earnings expanded by 94.7%.

PWR income statement →

Balance sheet and cash flow

As of June 30, 2026, Quanta Services held $506.4M in cash and short-term investments against total debt of $6.60B, resulting in net debt of $6.10B. Total assets stood at $28.29B, shareholders' equity was $9.64B, and the current ratio was 1.10, with a debt-to-equity ratio of 0.69. In FY2025, operating cash flow reached $2.23B, yielding free cash flow of $1.62B after $609.2M in capital expenditures. Cash deployment in FY2025 also included $134.6M directed toward share buybacks and $60.4M paid in dividends.

PWR balance sheet →

Valuation and performance

Quanta Services carries a market capitalization of $95.00B and an enterprise value of $101.55B. The stock trades at a trailing P/E of 72.4x and a forward P/E of 33.0x, compared to medians of 28.4x and 20.1x for its S&P 500 Industrials peers. Its EV/EBITDA multiple of 33.0x sits above the peer median of 17.2x, while its price-to-sales ratio of 2.9x is lower than the peer median of 3.3x. Over the past year, PWR gained 44.5% compared to 16.8% for the S&P 500 (SPY), and its 5-year return of 466.7% compares to 83.0% for the index.

PWR key metrics →

PWR dividend

Quanta Services pays a quarterly dividend with an annualized forward payout of $0.44 per share, translating to a dividend yield of 0.07%. The payout ratio is 3.4%, and the company has paid dividends for 9 consecutive years, delivering a 5-year annualized dividend growth rate of 13.8%. The last ex-dividend date was October 1, 2026.

PWR dividend history →

What analysts expect

Wall Street coverage includes 24 Strong Buy, 1 Buy, 5 Hold, and 1 Sell ratings. The mean price target is $766.01, representing a 21.2% premium over the last close of $631.86. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $39.56B and EPS of $16.74, a 55.7% increase. For the following fiscal year, 26 analysts project revenue of $45.80B and EPS of $19.86. Quanta beat EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.

PWR forecast and price target →

Key risks and what to watch

  • Operating margin of 7.2% and profit margin of 4.0% leave thin buffers against project cost overruns or supply chain disruptions.
  • Total debt of $6.60B compared to cash of $506.4M results in a current ratio of 1.10, requiring ongoing cash flow to service obligations.
  • The stock has a beta of 1.27, reflecting higher price volatility than the broader equity market.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this PWR AI stock analysis

This page is an AI-written research summary of Quanta Services, Inc. (PWR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PWR income statement, PWR balance sheet, PWR key metrics, PWR analyst forecast, PWR chart. See the PWR stock overview for the latest quote and news.

PWR AI stock analysis FAQ

What is Quanta Services' primary business model?

Quanta Services is an engineering and construction contractor operating across Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions segments.

What is Quanta Services' current dividend yield?

The stock pays a forward annual dividend of $0.44 per share, which corresponds to a dividend yield of 0.07% with a payout ratio of 3.4%.

How did Quanta Services perform in its most recent quarter?

In the quarter ended June 30, 2026, Quanta Services generated quarterly revenue growth of 41.1% and quarterly earnings growth of 94.7% compared to the prior-year period.

When is Quanta Services reporting its next quarterly results?

The company's next earnings release is scheduled for October 29, 2026, following 4 consecutive quarters of beating EPS estimates.

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